The cost of buying property in Dubai is more than the price on the listing. On top of the purchase price you pay a 4% Dubai Land Department (DLD) transfer fee, trustee office and admin charges, usually an agent commission, and extra bank fees if you borrow.
Added together, these costs often come to around 6% to 7% of the price, and more with a mortgage. This guide lists every fee, shows a worked example on an AED 2 million purchase, and explains the yearly costs that many first-time buyers miss.
Key takeaways
- The main cost is the 4% DLD transfer fee, charged on the sale value for ready and off-plan purchases.
- Ready purchases add trustee office fees (about AED 4,200 incl. VAT above AED 500,000), about AED 580 admin and often a 2% agent commission plus VAT.
- Mortgage buyers also pay 0.25% mortgage registration, valuation and a bank arrangement fee of up to about 1% of the loan.
- Budget for yearly costs too: service charges, cooling, insurance and maintenance.
In this guide
- Overview: what you pay when you buy
- The 4% DLD transfer fee
- Admin and trustee office fees
- Agent commission
- Off-plan costs: Oqood and payment plans
- Mortgage costs
- Worked example: an AED 2,000,000 ready apartment
- Ongoing costs many buyers miss
- Ready or off-plan: which costs more?
- Checklist before you pay a deposit
- How to reduce the cost
- Is the cost of buying property in Dubai worth it?
Overview: what you pay when you buy
Here is a general overview for a ready (secondary market) purchase. Amounts are typical figures and change over time, so confirm current rates with the DLD, your trustee and your bank before you commit.
| Cost | Typical amount | Paid by |
|---|---|---|
| DLD transfer fee | 4% of the sale value | Buyer (often) |
| Admin fees (title deed and related) | About AED 580 | Buyer |
| Trustee office fee | About AED 4,200 incl. VAT at AED 500,000 or more; about AED 2,100 below | Buyer |
| Agent commission | Usually 2% plus 5% VAT | Often the buyer, by agreement |
| Mortgage registration | 0.25% of the loan plus about AED 290 | Buyer, if borrowing |
| Valuation | About AED 3,000 | Buyer, if borrowing |
| Bank arrangement fee | Often up to 1% of the loan | Buyer, if borrowing |
The DLD fee and the trustee fee are set by the authorities. The agent commission is a market convention, so it is worth confirming in writing who pays it.
The 4% DLD transfer fee
The DLD transfer fee is the largest single cost. It is 4% of the sale value and is registered when ownership passes to you. On a AED 2,000,000 property, it is AED 80,000.
Some developers run promotions where they cover the DLD fee for off-plan buyers. If you see this, check that it is written into your Sale and Purchase Agreement (SPA), and ask whether the price was raised to pay for it. A fee waiver is only a saving if the underlying price is fair.
Admin and trustee office fees
For a ready purchase, the transfer is completed at a trustee office. You pay a trustee fee, which is about AED 4,200 including VAT for homes priced at AED 500,000 or more, and about AED 2,100 below that. A small admin charge of about AED 580 covers the title deed and related items.
These are small compared with the DLD fee, but they are fixed, so they matter more on lower-priced homes.
Agent commission
Agent commission is not set by law. The common rate in Dubai is 2% plus 5% VAT, so a AED 2,000,000 purchase with a 2% commission costs AED 40,000 plus AED 2,000 VAT. On off-plan launches, the developer usually pays the agent, so the buyer often pays nothing extra. Always ask who is paying before you sign a brokerage agreement.
Off-plan costs: Oqood and payment plans
Off-plan purchases are registered on the DLD’s Oqood system, which records your rights in the unit until handover. The 4% DLD fee still applies, and some developers absorb it as a promotion. You also pay in stages under the payment plan, with funds held in escrow until project milestones.
Our guide to buying off-plan property in Dubai explains the steps, and our post on off-plan versus ready property compares the two routes. If a project runs late, see what to do when an off-plan project is delayed.
Mortgage costs
If you borrow, there are extra fees on top of the deposit.
- Mortgage registration: 0.25% of the loan plus about AED 290.
- Valuation: about AED 3,000, depending on the bank.
- Arrangement fee: often up to 1% of the loan.
- Life and property insurance: required by most lenders, billed yearly.
Rates and loan limits change, so read our post on Dubai mortgage rates for the latest picture, and speak to a specialist early through our mortgage coordination service. Remember that your deposit and your fees both need cash up front.
Worked example: an AED 2,000,000 ready apartment
This example uses the typical amounts above. It is illustrative, not a quote.
| Item | Amount (AED) |
|---|---|
| DLD transfer fee (4%) | 80,000 |
| Admin fees | 580 |
| Trustee office fee (incl. VAT) | 4,200 |
| Agent commission (2%) plus VAT | 42,000 |
| Subtotal, cash purchase | 126,780 |
| Mortgage registration on a AED 1,500,000 loan (0.25% plus AED 290) | 4,040 |
| Valuation | 3,000 |
| Bank arrangement fee (1% of the loan, worst case) | 15,000 |
| Total with mortgage | 148,820 |
That is about 6.3% of the price for a cash purchase and about 7.4% with a mortgage, before your deposit. If you plan to sell in a few years, your price needs to rise by at least this much just to break even on entry costs.
Ongoing costs many buyers miss
The costs do not stop at the transfer. Plan for these every year:
- Service charges. They vary by building and are usually higher in towers with hotel-style services.
- Cooling and utilities. District cooling can be billed separately in some communities.
- Insurance. Property and, if borrowing, life cover.
- Maintenance and fit-out. Repairs, painting and furniture if you will let the unit.
- Management fees. If you hire a manager to find tenants and handle repairs, see our property management in Dubai service.
Deduct these from the rent to find your real net yield. Our yield and price guides show area benchmarks to compare against.
Ready or off-plan: which costs more?
The fees look different on each route, so compare them on a like-for-like basis.
- Ready purchase. You pay the DLD fee, trustee and admin fees and often an agent commission in one go at transfer. You can also start earning rent straight away, which offsets the entry cost sooner.
- Off-plan purchase. The agent is usually paid by the developer, and some launches cover the DLD fee. Your cash goes out in stages instead of at once, but you earn no rent until handover, and any price rise before then only helps if you can resell or hold.
Neither route is cheaper in every case. A ready unit has a clear cost sheet and immediate income. An off-plan unit can cost less to enter, but only if the base price is competitive and the project delivers on time.
Checklist before you pay a deposit
Ask for these in writing before you pay anything:
- The full purchase price and what it includes.
- Who pays the DLD fee, the trustee fee and the agent commission.
- The current service charge per sq ft and what it covers.
- Any developer promotions, and whether they change the price.
- For mortgages, the bank’s full fee schedule and the final loan amount.
- For off-plan, the payment plan, the escrow details and the handover date.
A clear cost sheet protects you from surprises on transfer day, and it makes it easier to compare two properties fairly.
How to reduce the cost
- Negotiate who pays what. Agent commission and, on some launches, the DLD fee can be part of the deal.
- Compare banks. Arrangement fees and valuation costs differ.
- Check the service charge before you buy. A cheap unit with a high charge costs more over time.
- Time the purchase. Off-plan promotions may cut entry costs, but only if the base price is fair.
- Get a full cost sheet in writing before you pay any deposit.
Is the cost of buying property in Dubai worth it?
The cost of buying property in Dubai is manageable when you plan for it. Budget around 6% to 7% of the price for fees, add more if you borrow, and keep a reserve for yearly costs. If the net return and your holding period still make sense after that, the entry cost is a fair price for access to the market.
The best way to be sure is to run the full numbers before you reserve a unit. If you would like help, book a private investment consultation and our team will build a cost sheet, model the net return and test your exit. If you plan to sell and reinvest, our sell, hold or reinvest service can help with that decision.
Related reading
- Buying off-plan property in Dubai
- Dubai mortgage rates
- Off-plan vs ready property in Dubai
- Dubai Creek Harbour investment guide
- Selling off-plan property before handover in Dubai
Frequently asked questions
1. How much does it cost to buy property in Dubai?
Expect around 6% to 7% of the price for a ready purchase, mainly the 4% DLD fee, trustee and admin fees and agent commission. Mortgage buyers pay more.
2. What is the DLD transfer fee?
It is 4% of the sale value, paid when ownership is registered with the Dubai Land Department.
3. Who pays the DLD fee?
The buyer usually pays it, although some developers cover it for off-plan buyers as a promotion. Make sure it is written into the SPA.
4. What is the trustee office fee?
It is a fixed fee for completing a ready-property transfer, about AED 4,200 including VAT at AED 500,000 or more and about AED 2,100 below that.
5. How much is agent commission in Dubai?
The common rate is 2% plus 5% VAT. It is a market convention, so confirm who pays it before you sign.
6. What is Oqood?
It is the DLD system that records off-plan purchases until the unit is handed over and a title deed is issued.
7. What extra fees apply with a mortgage?
Mortgage registration of 0.25% of the loan plus about AED 290, a valuation fee of about AED 3,000 and a bank arrangement fee of up to about 1%.
8. Are there yearly costs after I buy?
Yes. Service charges, cooling, insurance and maintenance all apply, and they reduce your net rental yield.
9. Can I reduce the cost of buying?
You can negotiate the agent commission, compare bank fees and look for developer promotions, but check that the base price is fair.
10. Do these fees change?
Yes. The amounts above are typical and can change, so confirm current rates with the DLD, your trustee and your bank.
